More shoppers seeking Black Friday deals amid inflation

25 November 2022 Consulting.us

More US consumers are planning to shop during the Black Friday and Cyber Monday shopping events this year as inflation continues to cut into household budgets, according to a Deloitte US report. The consulting firm surveyed 1,200 adults in the US in an online poll conducted between October 19-28.

Eight in 10 consumers said they plan to shop during the BFCM period, up from 71% in 2021. That jump brings BFCM shopping back to pre-pandemic levels (79% in 2019).

Shoppers will shell out an average of $500, spending half of their holiday budget as they seek out deals that make their dollars go further. Economic uncertainty has spurred shoppers to hunt for bargains earlier, pulling the holiday season ever forward. By the end of October, US consumers had spent nearly a quarter (23%) of their holiday budget.

Zooming in on the particular days, more Americans will shop on Black Friday (64% vs 56% in 2021) and they will also spend 8% more than last year ($205 vs $190 in 2021). More Americans will also shop on Cyber Monday (56% vs 48% in 2021) and they will spend 25% more ($218 vs $175).

Spending soars over BFCM

"With half of holiday budgets expected to be spent over the Thanksgiving shopping weekend, it's a critical period for retailers. Consumers from every income level are looking to maximize their holiday budgets, therefore seeing value in the promotions set to last throughout the week,” said Rod Sides, global leader of Deloitte Insights and vice chair, US retail, wholesale and distribution and consumer products.

Higher prices and economic uncertainty are also making Black Friday shoppers rely more on credit. Nearly half of BFCM shoppers plan to use credit cards to stretch their holiday budgets (48% vs 35% in 2021), while 37% plan to use buy now, pay later (BNPL) options.

Deloitte's survey also found that more people plan to shop in physical stores on Black Friday than in the previous year. Preference for online retailers will stay flat at 54%, while more will patronize mass merchants (63% vs 57% in 2021) and department stores (35% vs 29% in 2021).

“While Black Friday deals have traditionally been in-store, the event is becoming more channel-agnostic, with retailers offering comparable deals both in-store and online,” Sides added. “Retailers who can differentiate themselves through return policies, warranties, and other perks can entice consumers and result in a successful a holiday season."